Maruti Suzuki India Limited (MSIL), which is experiencing a massive decline in demand for its entry-level segment cars, has confirmed the launch of a new small vehicle on September 30. The company said its latest offering is set to “redefine” the entry-level segment.
While Maruti hasn’t announced the official name and specifications of the vehicle, it is widely reported that the new offering will be called S-Presso. The car would be the production variant of Future S Concept, which was showcased at the 2018 Auto Expo.
With the new vehicle, the company would be aiming to reduce the slump in sales it has seen in recent months, which has also impacted its market share in the Indian passenger vehicle market. In the month gone by, MSIL’s domestic sales declined by 34.3 per cent at 97,061 units as against 1,47,700 units in August 2018.
Sales of mini-cars comprising Alto and WagonR (where the new vehicle is likely to be placed) stood at 10,123 units as compared to 35,895 units in the same month last year, down by a whopping 71.8 per cent.
Owing to this big decline last month and consistent double-digit drop over the last few months, the market share of India’s largest carmaker eroded to 47.4 per cent from the high of 53.1 per cent in April 2019. The lowest Maruti’s monthly market share plunged to before was two years ago in June 2017, when it dropped to 46.9 per cent.
In a recent interview to a financial daily, MSIL chairman RC Bhargava said that ride-hailing companies such as Ola and Uber have hit demand for new cars in India as young buyers don’t need to buy cars for commute and can spend most of their income on electronic gadgets.
He further pointed out that the purchasing power of Indians has not risen in line with the increase in car prices, leading many to postpone the buying while car prices have been hiked to adhere to new emission norms.
Talking of the new vehicle, the new Maruti Suzuki S-Presso is expected to be based on the Heartect platform that underpins a number of new offerings from the manufacturer. The power of the car is expected to come from the 1.0-litre K-Series petrol engine that will be BS VI-compliant. In its current set-up, the motor churns out 67 bhp and 90 Nm of peak torque.
It wouldn’t be a surprise if the carmaker also introduces a compressed natural gas (CNG) variant of the car. Maruti has said that it would make all the small cars in its portfolio available in CNG variants to fill in the vacuum as it stops selling diesel cars from April 2020, when the BS-VI emission laws come into effect.